Abstract:     This case study explores the impact of global solar trade wars & India’s competitive position in solar manufacturing. Protagonist’s dilemma is to impose & decide on safeguard duties on solar cell imports or go for free trade at the cost of Indian industry.

 The protagonist in this case, Dr. Ravi Arya, is a senior bureaucrat in the Directorate General of Trade Remedies, Government of India and is reviewing a safeguard duty petition from the domestic solar PV manufacturers. During the case period 2015-2018, the Global Solar industry saw several trends – evolution of technology to drive grid parity (Margolis, 2002), polarization of technologies – and dumping of solar modules in different countries by leading global players (primarily from China, USA and select Asian countries). The Directorate is buffeted on one side by the global solar vendors & solar integrators demanding WTO compliance, zero duty imports and focus on demand creation by expanding government subsidies. On the other side of the equation is the National Solar Manufacturers’ association (NSMA) pleading for support because of wide-spread dumping of goods in the Indian market post a global supply glut created by global overcapacity.

 Learning outcomes

include an understanding of the trade remedial processes, of the undercurrents and viewpoints of different players - and potential options for balancing free trade with fair trade. At stake are developers interest in 7GW of solar project pipeline valued at $3.5 bln. However, a 30% price-fall because of global trade war, cripples local manufacturers (and is the potential windfall gain of $600 mln for the developers)